Vision Processing Unit (VPU) refers to a dedicated processor which produces high quality of images with ambient light and also reduces the power consumption by freeing up the CPU and GPU space thereby improving the overall performance of the system in which it is implemented. The Vision Processing Unit (VPU) market is primarily driven by the increasing adoption of machine vision systems across wide range of industry verticals including consumer electronics, automotive, healthcare, and manufacturing among others.

Additionally, the advent of Artificial Intelligence (AI) and machine learning technologies required to program the systems is expected to assist the growth of the market. Various robots having vision capabilities are increasingly being implemented across the manufacturing and automobile industries for various purposes which include inspection of the products, quality check, assisting in the various stages of production, and security and surveillance among others. 

Depending on application, the global VPU market has been segmented into smartphones, digital cameras, automobiles, wearable devices, drones, robots, and medical devices. In 2016, the smartphone segment was the highest revenue generating segment. Vision processing units are increasingly being used in smartphones to improve their photography capabilities and increase the functionality of the cameras which is fuelling the growth of the market. The smartphone segment is estimated to grow at CAGR of 16.95 % over the forecast period from 2017 to 2025.

Based on the end use verticals, the market has been divided into consumer electronics, automotive, industrial, and healthcare and others. In 2016, the consumer electronics segment was the topmost revenue generating segment owing to the increased implementation of VPUs in electronic devices such as smartphones, wearable devices, digital cameras, drones where low power consumption is a primary concern.

Furthermore, the automotive segment is also expected to witness a healthy growth owing to the large scale adoption of electronics in the automobiles for infotainment, driver assistance systems, and the extensive developments taking place in autonomous vehicles. The consumer electronics segment is expected to grow at CAGR of 16.86% over the forecast period from 2017 to 2025.

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